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Intuit Inc. (INTU - Free Report) , the software leader behind TurboTax, QuickBooks, Credit Karma and Mailchimp, has been a long-term winner in financial technology. Yet, despite reporting strong fiscal fourth-quarter and full-year 2025 results in the second half of August, shares of Intuit have declined 12.8% over the past three months.
INTU shares have underperformed the Zacks Computer – Software industry, the S&P 500 composite, as well as peers such as Autodesk, Inc. (ADSK - Free Report) and Commvault Systems, Inc. (CVLT - Free Report) .
The decline reflects broader market pressures, cautious guidance and segment-specific headwinds. Management has guided for revenue growth of 14-15% for the fiscal first quarter compared to the 20% experienced in the fourth quarter. For fiscal year 2026, management guided for 12-13% revenue growth, which is below the 16% experienced for fiscal year 2025. In this environment, investors are likely to have reacted cautiously, with concerns that execution risks in certain segments could weigh on results.
However, the question now is whether this pullback creates a buying opportunity, signals further downside or suggests a period of holding steady.
Image Source: Zacks Investment Research
What’s in Favor of INTU Stock?
Intuit posted solid fiscal 2025 results, with full-year revenues up 16% to $18.8 billion and fourth-quarter revenues surging 20% to $3.8 billion. Profitability also strengthened as GAAP operating income grew 36% to $4.9 billion and non-GAAP EPS advanced 19% to $20.15.
Intuit’s launch of a virtual team of AI agents marks a significant innovation push. These agents automate workflows and provide real-time insights, with millions of customers already engaging since launch. Early adoption rates have exceeded expectations, suggesting that AI will become a major growth driver across QuickBooks, TurboTax and the broader ecosystem in the coming years.
The company is making meaningful inroads into the $89 billion mid-market TAM through its Intuit Enterprise Suite and QuickBooks Online Advanced. Fourth-quarter billed customers nearly doubled compared to the third quarter, with large enterprise adoption rising quickly.
The Consumer Group delivered a solid performance, with TurboTax Live revenues jumping 47% for the full fiscal year and customers rising 24%. Credit Karma also shone, with revenues up 32%, fueled by personal loans, credit cards and auto insurance. Together, these platforms are deepening Intuit’s year-round engagement with consumers and expanding monetization opportunities beyond the tax season.
The recent estimate revision trends also echo similar sentiments. The consensus mark for fiscal 2026 and 2027 EPS has been revised upward over the past month, reflecting analysts’ bullish views.
Image Source: Zacks Investment Research
What Concerns Us About INTU?
Intuit has its share of challenges. Mailchimp remains a drag, with management only expecting it to return to double-digit growth by the end of fiscal year 2026. International growth has also lagged, limiting diversification. Intuit’s performance is also partly tied to small-business health, lending conditions (Credit Karma) and consumer tax dynamics. A slowdown in consumer spending or credit demand could pressure growth.
Moreover, even after the decline, Intuit trades at a premium multiple relative to the industry. In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 8.75X, which is at a premium to the industry average of 8.33X.
Compared with its peers, while the stock trades at a discount to Autodesk, it trades at a premium to Commvault Systems. At present, Autodesk and Commvault Systems have P/S multiples of 9.12X and 6.47X, respectively.
Image Source: Zacks Investment Research
Final Take on INTU
Intuit remains one of the most compelling fintech platforms, with durable moats in tax, accounting and consumer finance. Its aggressive AI rollout, expanding mid-market presence and integrated consumer platform position it well for sustained growth. The company also generates solid cash flow, funds buybacks and dividends and has manageable debt.
However, the stock’s valuation premium, Mailchimp drag and macro risks temper the near-term upside. While the 12.8% pullback improves entry points, it does not yet create a clear buying opportunity. Therefore, it seems prudent to hold the stock and wait for either a more attractive valuation or signs of acceleration in Mailchimp and international growth before adding exposure.
Image: Bigstock
Is INTU Stock a Buy, Hold or Sell After Its 12.8% Plunge in 3 Months?
Key Takeaways
Intuit Inc. (INTU - Free Report) , the software leader behind TurboTax, QuickBooks, Credit Karma and Mailchimp, has been a long-term winner in financial technology. Yet, despite reporting strong fiscal fourth-quarter and full-year 2025 results in the second half of August, shares of Intuit have declined 12.8% over the past three months.
INTU shares have underperformed the Zacks Computer – Software industry, the S&P 500 composite, as well as peers such as Autodesk, Inc. (ADSK - Free Report) and Commvault Systems, Inc. (CVLT - Free Report) .
The decline reflects broader market pressures, cautious guidance and segment-specific headwinds. Management has guided for revenue growth of 14-15% for the fiscal first quarter compared to the 20% experienced in the fourth quarter. For fiscal year 2026, management guided for 12-13% revenue growth, which is below the 16% experienced for fiscal year 2025. In this environment, investors are likely to have reacted cautiously, with concerns that execution risks in certain segments could weigh on results.
However, the question now is whether this pullback creates a buying opportunity, signals further downside or suggests a period of holding steady.
Image Source: Zacks Investment Research
What’s in Favor of INTU Stock?
Intuit posted solid fiscal 2025 results, with full-year revenues up 16% to $18.8 billion and fourth-quarter revenues surging 20% to $3.8 billion. Profitability also strengthened as GAAP operating income grew 36% to $4.9 billion and non-GAAP EPS advanced 19% to $20.15.
Intuit’s launch of a virtual team of AI agents marks a significant innovation push. These agents automate workflows and provide real-time insights, with millions of customers already engaging since launch. Early adoption rates have exceeded expectations, suggesting that AI will become a major growth driver across QuickBooks, TurboTax and the broader ecosystem in the coming years.
The company is making meaningful inroads into the $89 billion mid-market TAM through its Intuit Enterprise Suite and QuickBooks Online Advanced. Fourth-quarter billed customers nearly doubled compared to the third quarter, with large enterprise adoption rising quickly.
The Consumer Group delivered a solid performance, with TurboTax Live revenues jumping 47% for the full fiscal year and customers rising 24%. Credit Karma also shone, with revenues up 32%, fueled by personal loans, credit cards and auto insurance. Together, these platforms are deepening Intuit’s year-round engagement with consumers and expanding monetization opportunities beyond the tax season.
The recent estimate revision trends also echo similar sentiments. The consensus mark for fiscal 2026 and 2027 EPS has been revised upward over the past month, reflecting analysts’ bullish views.
Image Source: Zacks Investment Research
What Concerns Us About INTU?
Intuit has its share of challenges. Mailchimp remains a drag, with management only expecting it to return to double-digit growth by the end of fiscal year 2026. International growth has also lagged, limiting diversification. Intuit’s performance is also partly tied to small-business health, lending conditions (Credit Karma) and consumer tax dynamics. A slowdown in consumer spending or credit demand could pressure growth.
Moreover, even after the decline, Intuit trades at a premium multiple relative to the industry. In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 8.75X, which is at a premium to the industry average of 8.33X.
Compared with its peers, while the stock trades at a discount to Autodesk, it trades at a premium to Commvault Systems. At present, Autodesk and Commvault Systems have P/S multiples of 9.12X and 6.47X, respectively.
Image Source: Zacks Investment Research
Final Take on INTU
Intuit remains one of the most compelling fintech platforms, with durable moats in tax, accounting and consumer finance. Its aggressive AI rollout, expanding mid-market presence and integrated consumer platform position it well for sustained growth. The company also generates solid cash flow, funds buybacks and dividends and has manageable debt.
However, the stock’s valuation premium, Mailchimp drag and macro risks temper the near-term upside. While the 12.8% pullback improves entry points, it does not yet create a clear buying opportunity. Therefore, it seems prudent to hold the stock and wait for either a more attractive valuation or signs of acceleration in Mailchimp and international growth before adding exposure.
Currently, Intuit carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.